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The Warmware Gap
by Charles C Caro
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[Note:
This article was originally published in 1983 just two years after the
launch of the IBM Personal Computer. Then, as now, successful
vendors in the IT world are learning that the delivery of good warmware
is a key element of their success.]
Just when you think that you finally understand all of the keywords in
the microcomputer lexicon somebody coins a new word ending in
"-ware." Words like "hardware",
"software", and "firmware" may have been in your
vocabulary for sometime, but "warmware" may be new to many
people. In the very near future manufacturers, software publishers,
distributors, dealers, and end-users will be spending more time
discussing, debating, and demanding warmware than either hardware or
software. Indeed, survival at every point in the distribution channel
may hinge on the quality of warmware that is promised and/or delivered.
In a presentation at COMDEX/EUROPE last fall (1982), industry executive
H. E. James Firke, President of Internetworx, Inc., coined the term
"warmware." Mr. Firke, in coining the term, thus moved beyond
the industry's traditional concern with "support",
"hand-holding", and "user-friendly" interfaces to
take note of a whole new dimension brought into the picture by the
emerging mass market of entry level users. This new kind of customer
demands (and therefore should get) "warmware" built into the
system at every level -- in the hardware and software itself, at the
retail level, and later, in actual day to day use, at place of work or
in the home. The distance between talking about how grand it would be to
establish the perfect warmware interface for every product available to
end-users and the actual installation of that warmware interface can be
called the "warmware gap."
If warmware is so important to the industry, then it may be difficult to
understand why there should be such a thing as the warmware gap. The
answer to the why of the warmware gap question is the same at every
level in the computer distribution channel, and that answer is that
there is no such thing as free warmware. But, who pays and how much
warmware is sufficient in an already highly price competitive industry?
The answer to that question might be easier to establish if there was a
better understanding of what makes up a quality warmware
interface.
Ideally, the warmware interface should be installed at every level in
the distribution channel, but complications arise when diminishing
margins at every level begin to pinch out efforts to support a warmware
interface. For those caught treading water in a distribution channel
without a well anchored support system (warmware) it may be increasingly
difficult to stay afloat. Fortunately, or unfortunately, (it depends on
your outlook and vantage point) a weak or missing warmware interface has
an impact on everyone in a particular distribution channel from producer
through distributor/dealer right on down to the ultimate end-user
because to be effective the warmware interface must be installed at each
point the product changes hands. To compound the situation further one
must also understand that the warmware interface must be bi-directional
in that information on the nature of the end-users' needs must be
communicated back up the distribution channel through dealer/distributor
to the producer.
When an end-user shops for price of hardware and software alone two
things generally happen. First, the end-user is usually able to find
someone that will sacrifice margin for sales volume. The end-user may
shop a "special" in a computer store or take a chance on a
mail-order house, but the end-user will discover that nothing is lost in
shopping price alone as long as everything goes well and everything
works as advertised. In other words, sooner or later, the end-user will
learn that Murphy's Law applies to computers just like everything else.
At that point the end-user will also learn just how much warmware was
included with the hardware and software. In most cases the end-user
learns too late that when prices and margins are shaved to the bone
there is no room left for much in the way of a warmware interface, and
another microcomputer horror story about "bad" hardware and
software is written.
By now it should be apparent that a properly installed warmware
interface will promote end-user confidence and satisfaction in both
hardware and software as well as prevent a great deal of end-user
dismay. It should also be apparent that the value of that warmware
interface may work its way downstream to the end-user the demand for
that interface generally works its way upstream from the end-user.
Sadly, the microcomputer industry is in a stage of its development where
the mass marketing "experts" have gained a substantial hold on
the distribution channels, and everything that goes into or comes out of
those channels. The emphasis is increasingly turning to marketing plans
that put sales volume and margin ahead of such things as concern for the
warmware interface. Everyday something "new" and/or
"better" is announced in the microcomputer industry, but most
end-users fail to realize that most of the people selling microcomputers
know next to nothing about not only the hardware and software they sell
(let alone competing products on the market) but also the actual needs
of their targeted prospects. Quite literally the blind are leading the
blind, often with costly mistakes. The term shakeout is used more and
more frequently in reference to a company that was not able to read the
needs and wants of the market.
The industry shakeout effects the end-user because very often a company
will go under because it failed to include the cost of a warmware
interface in its overall marketing plan. When one company fails the
end-user is left with one less source for warmware. When a distribution
channel for a product begins to crumble the end-user may see sources for
warmware disappear until there is virtually nobody left to provide the
warmware interface.
It is clearly acknowledged that the demand for microcomputers will
continue to expand for many years, and that the microcomputer will
increasingly become a standard fixture in everyday life. For the
relative short-run it is clear that there will be a great deal of new
products coming onto the market. It is less clear how responsive the
industry can be in such a dynamic atmosphere because the pressure to be
responsive will be generated at both ends of all distribution channels.
Hardware and software producers will want to keep up with demand, and
will have to install mechanisms (warmware interface) to ensure that the
right signals are being sent to product designers. End-users will have
to become increasingly vocal on their specific needs and be willing to
pay the price to ensure that the correct signals are transmitted
upstream through the distribution channel to producers (warmware
interface). In the middle the dealers and distributors must be willing
to include the cost of evaluating not only the end-users' needs but also
the cost of communicating those needs to producers as products are
tested and evaluated (warmware interface).
Installation of the warmware interface may be the biggest challenge of
the decade. The task of convincing the end-user that the cost of support
(warmware) must be included in the price of a system may be as difficult
as the task of convincing Sales Managers that emphasis on sales volume
at the expense of warmware is short-sighted. Sales Managers must learn
that today's sales volume may lead to tomorrow's red ink. Perhaps the
biggest task in the process of establishing the warmware interface will
be in the identification of those dealers and distributors in the middle
that are qualified to provide the important middle connection in the
distribution channel. Once qualified dealers and distributors are
identified both the producers and end-users must encourage full
utilization of the warmware interface through those established dealers
and distributors and avoid the temptation to seek either
"paper" profits or "false" savings. |
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